MoU Seals Consortium for Machike-Thallian-Tarujabba White Oil Pipeline Project

Staff Report

In a landmark achievement, the signing ceremony of the Memorandum of Understanding (MoU) between the stakeholders for the Consortium Formation of the Machike-Thallian-Tarujabba White Oil Pipeline Project was held on February 14, 2024, at the SIFC Secretariat, PM Office.

The ceremony was witnessed by Minister for Power and Petroleum, Muhammad Ali; Secretary (Petroleum Division), Momin Agha; and Secretary SIFC, Jameel Qureshi. The heads of consortium entities, namely MD Pakistan State Oil (PSO) Syed Muhammad Taha, DG Frontier Works Organization (FWO) Major General Abdul Sami, and MD Interstate Gas Systems Pvt. Ltd (ISGS) Nadeem Bajwa, signed the historic Memorandum of Understanding.

The pipeline project stands as a testament to the commitment of the Petroleum Division and the Special Investment Facilitation Council (SIFC). The Machike-Thallian-Tarujabba White Oil Pipeline (MTT-WOP) aims to complement the oil pipeline backbone from Karachi to Peshawar, in addition to achieving energy-efficient movement of petroleum products, preventing adulteration, and enhancing safety measures. Russia to lay gas pipeline from Kazakhstan to Pakistan

It will establish a connection between Sindh and Punjab, running from Machike, near Lahore, to Tarujabba, near Peshawar. The pipeline comprises three segments: Machike-Chakpirana, Chakpirana to Rawat, and Rawat to Tarujabba, thereby completing the infrastructure supply chain from Karachi to Peshawar.

This project may be deemed a flagship initiative spearheaded by FWO and jointly supported by PSO and ISGS. Stretching 427 kilometers in length, the pipeline aims to ensure a seamless supply chain of petroleum products from Karachi to Peshawar, with an initial carrying capacity of 6 MTPA. Moreover, the pipeline is expected to significantly contribute to the reduction of traffic congestion, environmental pollution, and transportation costs.